AG 2002 10 21 (Regular) - Laserfiche WebLink

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City could not sustain such a low ad valorem tax rate. However, the recession had its impact on FY 2001-2002 revenues and there were little growth in property tax and sales tax revenues above projections. Although retail/commercial growth is evident, particularly in the Speedway/Concord Mills and Copperfield areas, staff has been cautious in projecting sales tax growth as we have with other revenues. Corporate layoffs result in less dispo, sable income and impact spending habits so now is not the time to over estimate these revenues. However, t is important to note that without past growth in the business sector, the burden of the burgeoning residential growth would likely have necessitated a tax increase this year. The economy impacts other funds as well, particularly the water and wastewater funds. With the drought and textile industry struggling, water and wastewater flows continue to be down, resulting in reduced revenues. This reduction, combined with the impact of water restrictions, has dramatically impacted Concord's revenues. It has also led to increases-in rates by the Water and Sewer Authority of CabarrUs County. As large users system-wide, such as Pillowtex, continue to decrease wastewater flows, this means the burden of paying the WSACC Set costs for wastewater treatment will shift from Pillowtex to other users, the largest by far being customers of Concord. Also, the past year has seen a slow down in the number of larger industrial/distribution facility relocations to our area., While our goal of industrial diversity implies that we need to avoid extremely large employers that could have major positive and negative impact on our local economy, Concord still needs to have strong and steady growth. Concord must continue to pursue a targeted economic development effort that includes working closer with existing industry; more emphasis on high-end office park development and a more focused marketing pl,an. Council has also indicated it wants to continue to put a strong emphasis on the importance of quality motor sports development, in the City. If such efforts are not undertaken by the Economic Development Commission, the City of Concord may need to take steps to make sure this happens for the financial security of our community. This may eventually necessitate the development of an internal economic development position within the City. However, this has not been recommended in the budget in anticipation of changes in the focus of the EDC. Growth Management One of the most difficult tasks Concord faces is growth management. Concord has little control over the growth that is occurring Outside its City Limits even though it is at urban densities. Growth must be coordinated among all the functions of local government, particularly planning and infrastructure development but this is not happening outside urban boundaries, particularly in the northwest part of the County. We feel Concord has made significant strides in implementing measures to insure quality growth. However, to be even more effective coordination must also be on a regional level. Concord will not be able to make a significant impact in growth management if other local governments and the State of North Carolina are not working together. The City of Concord has certainly seen its share of residential development that, because of loWer development standards, impose unfair costs on existing residents to improve infrastructure and add to the pressure to provide amenities like open space and recreation opportunities that are demanded by today's citizen. These problems are magnified by water restrictions as developers of property outside of the City threaten to install well systems in very urban residential developments if they do not get public water. The development in the northwest part of Cabarrus County is being spurred by the Rocky River Wastewater line. The municipalities are faced with the decision to let these large residential subdivisions develop with community wells or to allow them to hook on to public water. The restrictions on new water connections have made these issues even more difficult. The push for community wells for such urban development is' an environmental disaster waiting to happen to municipalities are being force into the "Catch 22" position of adding new development on to a limited water supply.